EK Business Tendency Survey: Russia’s attack on Ukraine cast a shadow on the business outlook

According to the Confederation of Finnish Industries’ April Business Tendency Survey, Finnish companies’ outlooks have darkened in all the main sectors. The business cycle is still favourable in manufacturing but is already declining in construction and services.

“Russia’s attack on Ukraine is reflected especially in construction, where the situation has deteriorated quickly. The availability of materials in particular is now a major issue, and it is also a significant problem in manufacturing. Even though there still is ample demand in many areas, uncertainty about the future combined with a strong rise in costs is making the operating environment significantly more difficult also for Finnish companies,” says Sami Pakarinen, Director at the Confederation of Finnish Industries.

Production and sales increased in all main sectors during the spring. As a whole, employment projections are also still good. The availability of skilled labour remains the biggest obstacle to growth for companies. Of the respondents, 32 per cent reported recruitment issues.

“As a result of the recovery from the Covid-19 crisis, outlooks in the various service sectors have also changed. The tourism and restaurant sector, which has long been suffering as a result of the pandemic, is now more confident with respect to the future. On the other hand, logistics and trade outlooks have deteriorated as consumer uncertainty has increased. “In the service sectors, problems regarding the availability of labour have further intensified. In construction, employment projections have become subdued,” says Pakarinen.